David Ellison Isn’t Giving Up Warner Bros. Quest: Paramount Skydance Extends Deadline for Hostile Takeover Offer
David Ellison is still angling to win support from Warner Bros. Discovery shareholders for Paramount Skydance‘s rival acquisition bid for the entire company, continuing his unlikely quest to derail Netflix’s deal for WB. But the Ellisons — for now — are not signaling that they’re willing to pony up more cash in the M&A fight.
On Thursday, Paramount Skydance said it was extending the deadline for its $30/share all-cash offer for WBD until Feb. 20. Paramount’s previous tender offer expired Jan. 21. Paramount filed preliminary proxy materials with the SEC to solicit shareholders of Warner Bros. Discovery to vote against the amended transaction with Netflix at the special meeting of WBD stockholders in April.
Paramount Skydance said in announcing the deadline extension that it was “reaffirming its commitment to a transaction with WBD at a $108.4 billion enterprise value that is significantly greater and far more certain than the purported $82.7 billion enterprise value of the Netflix transaction.”
“Paramount urges WBD shareholders to register their preference for Paramount’s superior offer with the WBD Board of Directors by tendering their shares today,” Paramount Skydance said.
Netflix on Tuesday (Jan. 20) sweetened its $83 billion deal to buy Warner Bros. Discovery’s TV and film studios and the HBO Max streaming business by switching to an all-cash offer, replacing its previous cash-and-stock agreement. The board of WBD has unanimously approved the Netflix pact — and has rejected Paramount’s buyout overtures eight times.
Netflix’s shift to an all-cash deal was aimed at puncturing one of Paramount’s key talking points: That the Paramount proposal was a better offer for WBD shareholders because its $30/share offer was all cash.
Netflix and WBD said their deal is on track to close 12-18 months following the signing of their original agreement on Dec. 4, 2025, pending regulatory clearances and WBD shareholder approval. Netflix’s deal for Warner Bros. would close following WBD’s planned Q3 spin-off of Discovery Global, which is set to include cable nets like CNN, TNT, TBS, HGTV and Food Network as well as TNT Sports and Discovery+.
